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A spate of takeover activity lower down the market enlivened the day.
At the time, there was some speculation that the case would chill hostile takeover activity.
And the slowdown in initial public offerings may also spur takeover activity.
There is something different about this latest round of takeover activity.
Analysts estimate that the industry as a whole has nearly $500 billion available for takeover activity.
This has profound implications for the UK biotechnology and pharmaceutical sector which has been the main focus of takeover activity.
There has been a frenzy of takeover activity in the bookies sector as firms respond to tax hikes and regulation.
While overall takeover activity remains low, investment bankers predict that more companies will seek growth by buying other businesses.
First is the pace and scale of takeover activity around the world, with bidders employing cheap debt in colossal volumes.
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Bates et al. (2008) report a mixed impact from ATPs in deterring takeover activities and note that the probability of becoming a target decreases for firms with classified boards, but some provisions, such as golden parachutes, even facilitate takeovers.
Instead of the faster wealth creation promised, money poured into activity – takeovers, private equity, property and financial engineering – that delivered fortunes through the transfer of existing, rather than the creation of new, wealth and businesses and jobs.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com